BayanTel incurs P979-M net loss in first semester

Lopez-owned Bayan Telecommunications Inc. incurred a net loss of P978.85 million in the first six months of the year, or 71 percent higher than last year’s P572.8 million loss as revenues fell across the board.

Based on its financial statements filed with the Securities and Exchange Commission, BayanTel registered total revenues of P2.32 billion, down 20 percent from P2.91 billion in 2005. On a per product basis, only data services posted a positive growth, rising by only two percent to P803.9 million largely due to the double digit growth of Internet revenues. This, however, was not enough to arrest the weakening of voice services and miscellaneous revenues.

Voice revenues fell 17 percent to P1.47 billion while miscellaneous revenues slid 86 percent to P49.1 million.

Internet revenues reached P295.7 million, up 22 percent from P241.8 million, primarily due to new corporate accounts booked as well as the activation of DSL subscribers from various markets. DSL subscribers surged 134 percent from 7,724 as of end-2005 to 18,069 by end-June this year.

BayanTel believes there is more opportunity for it to get a bigger slice of the DSL market as industry-wide DSL revenues are expected to continue to grow.

Local exchange revenues, on the other hand, dropped two percent from P950.3 million to P931.1 million as the number of subscribers fell to 277,181 from 278,664 a year ago. The decline was attributed to the price increase of the product Phone Basic from P449 per month to P499 per month.

During the period under review, BayanTel successfully launched its fixed line product, BayanTel SPAN, which uses the latest wireless landline service using code division multiple access (CDMA) technology which allows individuals or groups to carry their landline service almost anywhere within their local area of area code.

This service is initially being offered in the Metro Manila areas of Marikina and Manila and in the provincial cities of Tacoloban, Davao and General Santos.

The company’s general and administrative expenses, however, went down 12 percent to P1.31 billion.

Interest and other financing charges increased slightly by four percent from P859.9 million to P890.2 million, mainly due to the booking of Radio Communications of the Philippines Inc. (RCPI) loans based on contracted rates.

BayanTel spent P440.5 million in the first half this year, primarily for the expansion of its DSL and LEC services and the improvement of international cable facilities.

BayanTel is under receivership following the filing by the Bank of New York for and in behalf of its bond creditors a petition for corporate rehabilitation with the Pasig Regional Trial Court. RCPI, 87 percent owned by BayanTel, was included in the plan because it is operationally and financially integrated with BayanTel.